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Building services division closes as work dries up

Leeds-based building services firm Morfitts will close following the decline in workloads across the industry.

The company’s statement said the closure was due to the “dramatic reduction in work in the construction industry over the past few years, which has had a major impact on its financial performance”.

Additional factors leading to the decision were stated as the rise in material costs, eroded margins and the “demise of a number of clients”.

The company employs 55 people, engaged in the design and installation of mechanical and electrical services for commercial and industrial clients in both private and public sectors.

A redundancy programme is planned for next year, at the end of a 30-day consultation period beginning on 4 January.

Morfitts forms part of JH Shoukmith and Sons, which has said that none of its five other divisions will be affected by the closure.

Its five divisions employ more than 100 people operating under the Shouksmiths brand, working out of York, Leeds, Sheffield, Bolton and Gloucester.

J H Shouksmith and Sons managing director John Miller said: “We are obviously very sad to have to take this decision.

“We have looked at every possible option available to be able to keep Morfitts operating, but without success.

“The service provided by Morfitts compared to the other divisions is much more technical and cost-intensive to deliver, and in today’s brutal market the risks are that much higher.

“We are not prepared to compromise the Morfitts service and cannot deliver it for the price demanded in today’s market.”

A spokesperson for the company told H&V News that at present there are no vacancies available within the Shouksmith operation, but Morfitts staff would be able to apply for any openings that arise.